How do the small and medium-sized enterprises' deferred debt repayment policy come into effect? CBRC spokesperson explained all aspects of the policy

There is a full estimate of the bad rise caused by deferred debt and interest payments, and some policies and measures have a role in preventing risks. Banks need to improve the use of fraud models. Once illegal and other illegal activities are discovered, banks should immediately stop financing support to prevent moral hazard. The long-term positive trend of China's economic development has not changed, which determines that the rise of non-performing loans caused by epidemic factors in the banking industry will also be short-term, and the economic and financial foundation for non-performing loans to continue to rise sharply does not exist. From the perspective of enterprise types, medium-sized enterprises, small and micro enterprises, and owners of small and micro enterprises and individual industrial and commercial households are all covered by the policy. Hubei can be expanded to include all large enterprises. Encourage insurance companies to develop insurance products that respond to epidemic challenges and comply with the principles of insurance; use modern scientific and technological means to innovate insurance service methods; simplify procedures and improve service efficiency.

Regarding whether the temporary deferred debt and interest payment policy that is widely concerned by the outside world will cause the problem of corporate debt evasion and lead to a sharp rise in non-performing loans, the CBRC spokesperson responded in the evening of March 6 that the policy on deferred debt and interest payment It is a temporary and phased policy introduced during the New Coronary Pneumonia epidemic and has special characteristics. Affected by the epidemic, the overall non-performing loans of banks will rise to a certain extent, and this regulation has been fully estimated. Generally speaking, the impact of the epidemic on the economy and finance is temporary. On March 1, the China Banking Regulatory Commission, the People's Bank of China and other five ministries and commissions jointly issued the "Notice on Implementing Temporary Deferred Repayment of Principals and Interests on Small, Medium and Micro Enterprises' Loans" (hereinafter referred to as "Document 6"). For small and medium-sized enterprises that have encountered temporary difficulties, loans will be temporarily extended for repayment of principal and interest. "During the implementation of the policy, we require banking financial institutions to always adhere to the principles of marketization and rule of law, and pay attention to grasping the following aspects," the spokesperson of the CBRC spokesman specifically stated:

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The first is to focus on supporting small, medium and micro enterprises with normal operations in the early stage, temporary difficulties due to the epidemic, and good development prospects.

The second is to effectively prevent risks, and timely deal with any substantial changes in business operations during the loan period.

The third is to improve the use of anti-fraud models. Once illegal and illegal activities such as fraud are found, financing support will be stopped immediately to prevent moral hazard. After the enterprises resume work and resume production, after a period of normal operation, if these enterprises still cannot repay the principal and interest normally on time, the loans that are deemed bad should be deemed bad.

He emphasized that due to the impact of the epidemic, the overall non-performing loans of banks will rise to a certain extent, and this regulation has been fully estimated. "In fact, some of the policies and measures we have introduced have their own effect in preventing risks. For example, the temporary repayment of principals and interests on loans is to prevent the good customers of banks before the epidemic from becoming bad customers after the epidemic. These companies It is not a failure of its own operations. After the epidemic, most enterprises will soon resume and expand production and return to the right track. They will still be good customers supported by the bank. "In addition, he pointed out that the impact of the epidemic on economic and financial conditions is temporary. The long-term development trend has not changed, which determines that the rise of non-performing loans caused by epidemic factors in the banking industry will also be short-term, and the economic and financial foundation for non-performing loans to continue to rise sharply does not exist. China's banking industry has sufficient provisions, with a provision coverage ratio of over 180% and an average capital adequacy ratio of about 14%. It has a strong ability to resist risks and absorb losses. We also continue to encourage banks to step up their efforts to dispose of non-performing loans in a timely manner. In accordance with the relevant requirements of "Document No. 6," banks can grant loans to small and medium-sized enterprises for a certain period of time to extend the principal and interest payment arrangements, which can be extended up to June 30, 2020 without penalty interest. A spokesperson for the China Banking Regulatory Commission said that for a small number of small and medium-sized enterprises that have been severely affected by the epidemic, have a long recovery period and have good development prospects, if the company has a longer period of loan repayment, the bank can negotiate with the enterprise to determine another extension arrangement. Banks and enterprises must be honest, comply with laws and regulations, and must avoid telling lies, reporting false materials, or even taking the opportunity to escape debts. So, will there be concentrated repayment of principal and interest after the extension? He replied that after June 30, the bank could independently negotiate with the enterprise and reasonably determine the subsequent principal and interest payment plan according to the principles of marketization and rule of law based on the impact of the epidemic situation and the recovery of the business.

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The general principle is to take full account of the resumption of production, production and operation of the enterprise, give full consideration to the company's actual repayment ability, and fully negotiate and reach an agreement. For different enterprises, the principal and interest payment plan should reflect different treatments and different arrangements. There must be operability and flexibility in the implementation process. Specific methods can be adopted such as repayment of principal, equal principal and interest, and irregular repayment. The concentrated repayment of the principal or interest after the extension has caused the company's capital turnover to become tight again. What are the main beneficiaries of the temporary deferred debt service policy?

In accordance with the relevant requirements of "Document No. 6," for loans that meet the requirements for the implementation of temporary deferred repayment arrangements, the risk classification of loans may not be temporarily reduced, credit records will not be affected, and penalty interest rates will not be charged. The specific beneficiaries of related policies can be grasped from the following dimensions:

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From the perspective of industry type, policies can cover all industries affected by the epidemic. For industries that have been particularly affected by the epidemic and encountered special difficulties, such as transportation, wholesale and retail, culture and entertainment, accommodation and catering, etc., banking financial institutions should give appropriate preferences according to actual conditions.

From the perspective of enterprise types, medium-sized enterprises, small and micro enterprises, and owners of small and micro enterprises and individual industrial and commercial households are all covered by the policy. Hubei can be expanded to include all large enterprises. In particular, individual industrial and commercial households affected by the epidemic can enjoy this temporary deferred repayment policy.

From the nature of loans, it is mainly for production and business loans. Personal business loans, including truck drivers, taxi drivers, and other special groups, can be temporarily extended with reference to individual industrial and commercial households. At the same time, financial leasing companies and other institutions are encouraged to implement temporary deferred rent payment arrangements for corporate and individual customers with reference to "Document 6" based on their own operating strength and risk tolerance.

So let's take a look at the specific process of applying for a temporary extension of debt and interest payments.

What role can the insurance industry play in supporting enterprises to resume work and production?

The spokesman pointed out that insurance, as a special industry that provides risk protection, can do much. According to preliminary statistics, since the outbreak of the new crown pneumonia epidemic, 68 insurance companies have developed more than 600 insurance products. Hubei insurance companies have responded to the initiative to extend the coverage period of all valid auto insurance policies from January 23, 2020. According to the 1.5-2 month extension period, it is estimated that auto insurance premiums will be reduced by about RMB 3-7 billion. Insurance companies can also provide credit enhancement support for small and medium-sized enterprises to obtain bank loans through credit insurance and guarantee insurance. It is understood that insurance institutions have supported more than 700,000 enterprises in obtaining loans of more than 100 billion yuan. In addition, insurance companies have also developed new insurance products for medical personnel and employees of small and micro enterprises to increase the amount of insurance. Some also offer free insurance donations. "In the next step, the CBRC will further strengthen the overall coordination of the prevention and control of the epidemic situation in the insurance industry and support the resumption of production and production of enterprises through the use of modern insurance functions." He said:

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The first is to continue to strengthen insurance services during the epidemic. Carry out timely reminders of auto insurance renewal during epidemic prevention and control, optimize and simplify the renewal process, and increase the promotion of electronic policies. For logistics enterprise vehicles transporting anti-epidemic materials and important living materials, support can be provided by appropriately extending the insurance period and deferring the payment of auto insurance premiums to alleviate the difficulty of the enterprise's capital turnover. Encourage insurance companies to appropriately reduce insurance premiums for operating vehicles, ships, and aircraft that were suspended during the immunization period.

The second is to encourage insurance companies to develop insurance products that meet the challenges of the epidemic and comply with the principles of insurance, such as business interruption insurance against financial losses caused by the suspension of production and production. Conditional local governments are encouraged to grant appropriate premium subsidies to enterprises purchasing related insurance.

The third is to use modern technology to innovate insurance service methods. Actively use cloud computing, artificial intelligence and other technical means to guide enterprises to conduct business through online methods such as the Internet, WeChat public account, and mobile applets.

The fourth is to simplify procedures and improve service efficiency. Urge insurance companies to open claims green channels, further simplify the underwriting claims procedures and material requirements, relax the time limit for underwriting claims, and efficiently meet the insurance needs of resumption and production enterprises.

In the next step, how will the regulatory authorities promote the implementation of financial policies to support the resumption of production and production of enterprises?

A spokesperson for the China Banking Regulatory Commission pointed out that one point is deployed and nine points are implemented. The supervisory department will continue to urge the banking and insurance institutions to implement the various financial policies and measures that have been issued to support the resumption of production and production of enterprises. It mainly includes the following four aspects:

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The first is to strengthen monitoring statistics. Improve the statistical monitoring mechanism supporting the policy of supporting the resumption of production and production of enterprises, especially on the basis of the existing statistical framework, strengthen the monitoring and statistics of the implementation of temporary deferred repayment arrangements for corporate loans, and timely grasp the progress of the implementation of relevant policies.

The second is to strengthen window guidance. Strengthen the interpretation of various policies, and guide banks and insurance institutions to make full use of relevant supporting policies to ensure that the implementation of policies is not discounted and that the effectiveness of policies is diminished.

The third is to strengthen the summary evaluation. Timely analysis and analysis of new situations and problems in the implementation of various policies, and strive to solve various obstacles and difficulties encountered in the implementation of policies; summarize the good experience in the implementation of various policies.

The fourth is to strengthen coordination and coordination. In accordance with the unified deployment of the Party Central Committee and the State Council, in conjunction with changes in the epidemic situation, cooperate with relevant departments to formulate and improve other policies and measures that support the resumption of production and production of enterprises, form a joint force, and actively do a good job in overall promotion of epidemic prevention and control and economic and social development.